Thank you again for the advice.
I will try to be as clear as possible with this post to try and avoid any further confusion.
I am the sole owner of this C corporation. I bought all the shares (200) back in 2015.
As of 12/13/2022, I have liquidated the company, it is closing its doors.
As I understand it, by liquidating the company, the company will be buying back the shares from the shareholder, which is me.
So with this post, I am trying to understand how the C corporation will fill outs its tax return (its 1120 form).
My questions:
1. Does the corporation reflect this purchase of shares on Schedule D as a capital gain/loss? Some replies to this post have said YES, others have said NO! Some replies have said the corporation just reflects this repurchase of shares as a distribution to the shareholder by sending the shareholder a 1099-DIV, and that no schedule D transaction is required. So I am not sure what to do from the corporation's perspective.
2. IF the corporation has to reflect this transaction on schedule D, how does the corporation do it? From the corporation's perspective, the corporation sold the shares in 2015 and purchased the shares back on December 13, 2022. That sounds like a typical "short sale", where date acquired and date sold are the same. Turbotax wont let me list a date sold as 2015 and a date acquired as 2022.
3. IF the corporation doesn't have to list this on schedule D, great!
So you see, my questions from the start are about how the CORPORATION reflects the liquidation, NOT how the shareholder will reflect the transaction on their individual tax return.
Thank you again
